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Consider the linear demand curve: D(p) = 10 - 2p (a) What is the consumer surplus when p=2? Show it by using calculus or graph,
Consider the linear demand curve: D(p) = 10 - 2p
(a) What is the consumer surplus when p=2? Show it by using calculus or graph, not both.
(b) If the government imposes a one-dollar tax on the price p=2, what is the change in consumer surplus? What is the total tax collected by the government? Show it by using calculus or graph, not both.
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